St. Kitts and Nevis Country Profile
General Information
Population
Total: 55,133
Male: 27,599
Female: 27,534 (2024 est.)
Ethnic groups
African descent 92.5%
Mixed 3%
White 2.1%
East Indian 1.5%
Other 0.6%
Languages
English (official).
Religions
Protestant 75.6% (includes Anglican 16.6%, Methodist 15.8%, Pentecostal 10.8%, Baptist 5.4%, Seventh Day Adventist 5.4%)
Roman Catholic 5.9%
Hindu 1.8%
Median age
Male: 38.8 years
Female: 38.3 years
Population distribution
Population clusters are found in the small towns located on the periphery of both islands. [1]
Economic Context
Economic overview
Real GDP (purchasing power parity)
$1.438 billion (2023 est.) $1.39 billion (2022 est.) $1.258 billion (2021 est.)
Real GDP growth rate 3.43% (2023 est.) 10.52% (2022 est.) 0.48% (2021 est.)
Agricultural products: coconuts, tropical fruits, root vegetables, vegetables, eggs, pulses, tomatoes, beef, sweet potatoes, watermelons
Industries: tourism, cotton, salt, copra, clothing, footwear, beverages
Industrial production growth rate: 2.4% (2023 est.)
Public debt: 62.9% of GDP (2017 est.)
GDP - composition, by sector of origin Agriculture: 1.1% (2017 est.) Industry: 30% (2017 est.) Services: 68.9% (2017 est.) Budget: Revenues: $286 million (2020 est.)
Expenditures: $324 million (2020 est.)
Economy in Context
St. Kitts and Nevis is a high-income economy with a GDP per capita of about $18,000 in 2021, the highest among ECCU countries. Its economy is largely driven by tourism, with construction and light manufacturing also contributing. However, the country is vulnerable to natural disasters, which have caused average annual economic losses of 4.2% of GDP between 1970 and 2021.
Thanks to prudent fiscal management and revenues from the Citizenship by Investment (CBI) program (65% of GDP between 2017 and 2021), the country has maintained fiscal surpluses and reduced public debt from 135% of GDP in 2010 to below 70% since 2015.
Fiscal stimulus during the pandemic had little impact on public debt due to a surge in CBI revenue. The new government, elected in 2022, has a social agenda focused on governance improvements while maintaining fiscal caution.
The 2023 budget projects a small surplus, controlled spending, and increased capital investments. However, the sustainability of CBI revenue is a concern, and there is a need for policies to reverse tax revenue erosion and improve spending efficiency to ensure fiscal stability and resilience to natural disasters.
The economy of St. Kitts and Nevis suffered a delayed recovery due to the COVID-19 pandemic. In 2020, GDP contracted by 14.5%, and by 0.9% in 2021. Tourism lagged behind other ECCU and Caribbean nations due to the country’s stricter and prolonged COVID restrictions, including a complete halt to cruise ships and a month-long lockdown.
Global challenges in 2022, such as high fuel and food prices and tight financing conditions, limited the expected recovery. Growth is projected at 9% for 2022 and 4.5% in 2023, with GDP expected to reach pre-pandemic levels by the end of 2024.
Inflation rose to 3.8% by December 2022, the highest since 2011, driven by rising food and shipping costs, but it remained lower than in regional peers due to proactive government measures that helped contain food and energy prices. Fiscal measures during the pandemic, amounting to 5% of GDP, were among the strongest in the ECCU. CBI revenues helped minimize the increase in debt, keeping the debt-to-GDP ratio the lowest in the region.
In response to the cost-of-living crisis in 2022, the government increased wages and pensions by 10%, provided income support, and reduced excise taxes, totalling 4% of GDP. The country’s reliance on CBI revenue has grown, as tax revenues have continued to decline, particularly income taxes. In 2022, the government repurchased land (8% of GDP) and increased CBI due diligence fees, contributing to higher expenditures.
Despite a deficit of 3% of GDP in 2022, public wages increased and capital spending declined due to delayed projects. [2]
Political Context Government
Government type: Federal parliamentary democracy under a constitutional monarchy; a Commonwealth realm.
Capital: Basseterre
Administrative divisions: 14 parishes; Christ Church Nichola Town, Saint Anne Sandy Point, Saint George Basseterre, Saint George Gingerland, Saint James Windward, Saint John Capesterre, Saint John Figtree, Saint Mary Cayon, Saint Paul Capesterre, Saint Paul Charlestown, Saint Peter Basseterre, Saint Thomas Lowland, Saint Thomas Middle Island, Trinity Palmetto Point.
Executive Branch Chief of state: King CHARLES III (since 8 September 2022); represented by Governor General Marcella LIBURD (since 1 February 2023)
Head of government: Prime Minister Dr. Terrance DREW (since 6 August 2022)
Cabinet: Cabinet appointed by the governor general in consultation with prime minister
Elections/appointments: the monarchy is hereditary; governor general appointed by the monarch; following legislative elections, the leader of the majority party or majority coalition usually appointed prime minister by governor general; deputy prime minister appointed by governor general.
Legislative Branch Description: unicameral National Assembly (15 seats, including the attorney general; 11 members directly elected in single-seat constituencies by simple majority vote and 3 appointed by the governor general - 2 on the advice of the prime minister and the third on the advice of the opposition leader; members serve 5-year terms)
Elections: last held on 5 August 2022 (next to be held on 2027)
Election results: percent of vote by party - SKNLP 44.4%, PLP 16.1%, PAM 16.2%, CCM 12.7%, other 10.6%; seats by party - SKNLP 6, CCM 3, PLP 1, CCM 1; composition - men 11, women 5, percentage women 31.3%
Judicial Branch
Highest court: the Eastern Caribbean Supreme Court (ECSC) is the superior court of the Organization of Eastern Caribbean States; the ECSC - headed by the chief justice and 4 judges - and the High Court with 18 judges; Saint Kitts and Nevis is also a member of the Caribbean Court of Justice
Political Parties
Concerned Citizens Movement or CCM Nevis Reformation Party or NRP People's Action Movement or PAM People's Labour Party or PLP Saint Kitts and Nevis Labor Party or SKNLP [3]
International Political Context
1. Diplomatic Engagements and Multilateralism United Nations (UN): St. Kitts and Nevis is an active member of the United Nations, advocating for small island developing states (SIDS) on issues such as climate change, sustainable development, and economic vulnerability. It often aligns with other Caribbean nations and SIDS to voice concerns about environmental protection, especially regarding the existential threats posed by rising sea levels and natural disasters.
Organization of Eastern Caribbean States (OECS): As a founding member of the OECS,
St. Kitts and Nevis plays a role in regional cooperation on issues such as economic integration, regional security, and disaster preparedness. The OECS promotes collective diplomacy for its members in international forums.
Caribbean Community (CARICOM): St. Kitts and Nevis is also a member of CARICOM, participating in efforts to promote regional integration, trade, and security cooperation. CARICOM's stance on issues like reparations for slavery, regional security, and economic resilience aligns with St. Kitts and Nevis’ interests.
2. Climate Change Advocacy: St. Kitts and Nevis is a vocal advocate for climate action due to its high vulnerability to natural disasters like hurricanes. It regularly participates in global climate change conferences, such as the Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC), calling for stronger climate financing and measures to reduce global emissions.
The nation is often part of negotiations for climate financing, seeking funds from international institutions like the Green Climate Fund (GCF) and the Global Environment Facility (GEF) to support its adaptation and resilience efforts.
3. Economic Diplomacy and Citizenship by Investment (CBI) CBI Program: St. Kitts and Nevis is internationally known for its Citizenship by Investment (CBI) program, one of the oldest of its kind, launched in 1984. It allows foreigners to acquire citizenship in exchange for investments, contributing significantly to the nation’s economy.
However, this program has drawn international scrutiny, particularly from the European Union (EU) and the United States, due to concerns about due diligence, money laundering, and the potential misuse of passports by illicit actors.
4. Relations with Major Powers United States: St. Kitts and Nevis maintains close ties with the United States, which is one of the region’s key security partners.
Through programs like the Caribbean Basin Security Initiative (CBSI), the U.S. provides assistance in combating drug trafficking and, organized crime, and strengthening law enforcement capacities. The U.S. is also a major source of tourism and remittances for the country. China: St. Kitts and Nevis has developed a growing relationship with China, receiving Chinese investments and aid for infrastructure projects. Like many Caribbean nations, it has also benefited from China's Belt and Road Initiative (BRI).
However, balancing relations with both the U.S. and China has become increasingly important as global geopolitical tensions rise. European Union: Relations with the EU are largely shaped by trade agreements and the CBI program.
The EU has raised concerns about the lack of stringent controls in the CBI program, and St. Kitts and Nevis has responded by enhancing transparency and regulation to maintain access to European markets and banking systems.
5. Sovereignty and Foreign Aid
As a small nation, St. Kitts and Nevis is heavily reliant on foreign aid, particularly for disaster relief and recovery. The country seeks to maintain its sovereignty while engaging in diplomatic relationships that secure financial and technical assistance from larger nations and multilateral organizations like the International Monetary Fund (IMF) and the World Bank.
6. Commonwealth Membership: St. Kitts and Nevis is a member of the Commonwealth of Nations, which provides a platform for cooperation on governance, human rights, and development. The Commonwealth also supports the country’s initiatives on climate resilience and sustainable development.
